What franking credit means
A franking credit is an Australian tax credit attached to some dividends where company tax has already been paid on the profits being distributed.
Example
Hypothetical example: a fully franked Australian dividend can be described as a cash amount plus an attached franking credit in a grossed-up calculation.
Why it matters
Franking can change how Australian resident investors interpret grossed-up yield language and dividend tax reporting.
Limitation or caveat
Franking rules are tax-specific and depend on residency, holding period rules, income, and legislation. DividendTen does not provide tax advice.
Related DividendTen pages
For more context, read Franking credits explained and use Franking credit calculator. You can also review the methodology and data verification policy.
Educational context only. This glossary entry is not investment, tax, legal, or personalized financial advice. Dividend terms help readers understand data fields, not decide whether any security is suitable.